Doing Taxes With IM?
As I actually start to see some money start to roll in the thoughts of taxes aren't far behind. Being 18, I've only actually done my taxes once, and only a 1040 at that. But now, im at the point where ill have to monitor my own income, I wont have a w-2 handed to me. I have 3 main ways i make money online and was hoping to get any advice on how to go about filing when the time comes.
1. fiverr
I run a small little deal with a couple friends on Fivver. I take their talent whether it be drawing or making music or whatever and create/promote a gig about it. Every sale we make I take 1$ and give them 3$. Now when the pay comes, lets say for 1000 gigs in a year, it will look like i made $4,000 but in reality only made a quarter of that. so, in the event of an audit, how can i prove that? Should I make my friends sign a contract stating thats whats going on, and how well will that hold up if they're under 18?
I also do something similar on a print on demand site called zazzle. A friend makes design and i upload and promote them while splitting the profit.
2. Ebay
I also go around to local thrift shops and resell the items on ebay. Here I keep all the receipts, for the item and shipping, and also print of invoices from ebay from their fee payments. Is this gonig to be enough in the event of an audit?
3. IM sites
I also run a few affiliate sites where sales are starting to come in. What can I right off here? Can i print off invoices and receipts for hosting and domains? What else could i do to lower my taxable income?
I really appreciate anyone who takes the time to read this and thank all who add their input!
1. fiverr
I run a small little deal with a couple friends on Fivver. I take their talent whether it be drawing or making music or whatever and create/promote a gig about it. Every sale we make I take 1$ and give them 3$. Now when the pay comes, lets say for 1000 gigs in a year, it will look like i made $4,000 but in reality only made a quarter of that. so, in the event of an audit, how can i prove that? Should I make my friends sign a contract stating thats whats going on, and how well will that hold up if they're under 18?
I also do something similar on a print on demand site called zazzle. A friend makes design and i upload and promote them while splitting the profit.
2. Ebay
I also go around to local thrift shops and resell the items on ebay. Here I keep all the receipts, for the item and shipping, and also print of invoices from ebay from their fee payments. Is this gonig to be enough in the event of an audit?
3. IM sites
I also run a few affiliate sites where sales are starting to come in. What can I right off here? Can i print off invoices and receipts for hosting and domains? What else could i do to lower my taxable income?
I really appreciate anyone who takes the time to read this and thank all who add their input!